Adani Ports hits life high, surges over 3% on Mundra SEZ nod

NEW DELHI: Shares of Adani Ports and Special Economic Zone jumped as much as 3.09 per cent in trade to its life high of Rs 289.80 on Thursday, after the company said it has got the environmental clearance for the special economic zone from the Ministry of Environment and Forests (MoEF) for the Mundra SEZ.

The approval comes three days after the Supreme Court on Monday asked MoEF to decide grant of clearance or denial to Adani Ports and SEZ.

The clearance will now allow APSEZ, which operates India’s only port-based SEZ, to set up a mega desalination plant, an effluent treatment plant and intake of sea water, all of which constitute primary infrastructure to be provided for companies setting up business units in the special economic zone.

"The grant of the environmental clearance to Mundra SEZ by MoEF will encourage investment in SEZ and the development is expected to be at a much faster pace as it provides seamless connectivity through sea, rail and road," Gautam Adani, Chairman of Adani Group said.

P Phani Sekhar, Fund Manager-PMS, Angel Broking, said, "This is certainly a big relief for Adani Ports because if you look at the stock price movement for some time now this was already factored in but this clearance was something that was not seen on the ground."

"It is too early to pencil in what kind of more benefits will flow in because these projects are typically long term for the first benefit to be seen it will take another five years," added Shekhar.

Prakash Gaba, CFT, prakashgaba.com said that Adani Ports is a good stock pick. He recommeded a buy on the stock with a stop below Rs 270 and target of levels closer to Rs 300.

Sandeep Wagle, Founder & CEO, Power My Wealth also recommeded a buy on the stock with a stop loss of Rs 281 and target of Rs 296.

Other stocks of Adani Group also saw some buying activity as media reports suggested that the group is seeking shareholder approval to raise Rs 16,000 crore between the three companies, Adani Enterprises, Adani Power and Adani Ports and Special Economic Zone (APSEZ), through specified financial instruments in the foreign or domestic market.

At 12:45 p.m. the stock of Adani Ports and Special Economic Zone was trading at 284.55 up 1.23 per cent. It touched a high of 289.80 and a low of Rs 283.25 in trade today.

Stock of Adani Enterprises Ltd was trading at 452.70 up 0.64 per cent. It touched a high of 452.65 and a low of Rs 450 in trade today.